The Internationalization Of RMB Has Become The Focus Of Textile And Garment Manufacturing Industry Again.

Before the implementation of the RMB cross-border trade settlement pilot, textile and clothing exports are all denominated and settled in foreign currencies, and the export settlement behavior is completed in two steps, namely, foreign exchange collection and export settlement. In the form of foreign exchange valuation and settlement, a significant depreciation of foreign exchange will bring greater exchange losses to textile and garment exports.

After the internationalization of the RMB, it will bring certain positive effects to the export of textile and clothing, such as reducing exchange rate risk. But this positive effect is restricted by the pricing power of textile and garment export enterprises in the export trade negotiations and the degree of internationalization of RMB.

In September 20th, the people's Bank of China issued a notice authorizing the Bank of China New York branch to act as the US RMB clearing bank. This not only marks a new step in financial cooperation between China and the United States, but also another important milestone in the process of RMB internationalization.

As the world's largest economy, the US market has always been a battleground for the military. The establishment of the RMB clearing bank will further facilitate the use and cross-border trade of RMB in the US, and promote two-way trade, investment and economic cooperation between China and the United States to a new level.

In October 1st, the yuan was formally incorporated into the International Monetary Fund (IMF) special drawing rights (SDR) to pave the way for the internationalization of RMB. The yuan has officially joined the SDR basket of currencies, which means that both the IMF itself and its 189 member countries have approved the renminbi as a reserve currency theoretically.

As industry and capital go abroad through "one belt and one road", RMB internationalization It also accelerates the pace of going forward. Experts point out that the population along the "one belt and one road" area accounts for 6 of the world's total population and the total economic volume is nearly 3. The strategy of "one belt and one road" will help to form the "RMB zone" in the longest economic corridor in the world.

For example, in December 2015, the RMB exchange rate on the Somoni exchange rate was successfully held. Our enterprises and individuals and banks in Xinjiang can use their currencies and the other countries' currencies in the trade settlement and other financial settlement spanactions. This is also an important sign for Xinjiang to actively carry out economic and financial cooperation with Tajikistan and serve the "going out" enterprises in Xinjiang.

For example, in September 2015, Xinjiang Kashi successfully opened the RMB exchange rate between the RMB and the Pakistan rupee interbank currency exchange rate and held the launching ceremony at the Bank of China Kashi branch. This will not only facilitate the settlement of trade and investment funds of new Pakistan, but also effectively expand bilateral customer trading channels and expand the scope of financial cooperation.

Recently, the reporter interviewed Liang Yanfen, director and researcher of the World Economic Research Institute of the Ministry of Commerce, and explored the promotion of Chinese textile and garment export enterprises on the above 3 financial events.

According to the degree of internationalization, currency internationalization can be divided into three levels: the means of valuation and settlement as an international trade; as a tool for international investment and international lending, as one of the currencies of foreign exchange reserves.

This time, how much does the renminbi take into the International Monetary Fund? Liang Yanfen explained to reporters: "SDR is the reserve asset and accounting unit created by IMF. Before joining the renminbi, it was mainly composed of 4 currencies, the US dollar, the euro, the yen and the pound. Their share in the SDR basket was 41.9%, euro 37.4%, Sterling 11.3% and Japanese yen 9.4% respectively. The share of RMB after entering the country is 10.92%, and the share of US dollar, euro, yen and sterling will be adjusted to 41.73%, 30.93%, 8.33% and 8.09%, respectively, 0.17, 6.47, 3.21 and 1.07 percentage points lower than before. According to the IMF rules, the weight of Basket Currencies in SDR is not static. With the change of currency in the global trade and financial field, IMF adjusts the share of currencies in SDR every 5 years. "

The renminbi will be included in the SDR as the international reserve currency and its textile products to China. Clothing export Liang Yanfen has made a prediction from the following two aspects: first, joining the SDR means that RMB has been internationally endorsed and endorsed by IMF, and has gained new credit support and guarantee for Chinese textile and garment industry, and has helped overseas financing of Chinese enterprises. Two, joining the SDR will help enhance market confidence in RMB, stabilize market expectations, and further expand the use of RMB in cross-border trade and investment settlement, which is beneficial to the stability of RMB exchange rate, especially for China's textile and garment enterprises.

After the establishment of the RMB offshore center in the world's largest economy, what are the advantages of China's textile and garment enterprises in terms of export?

In this regard, Liang Yanfen told reporters that the offshore renminbi market is an important area to accelerate the process of internationalization of the RMB, and it needs close integration of supply and demand to be established. The United States set up RMB offshore center, one is the need for the development of economic and trade relations between the two major powers of the United States and China, and the two is stable, spanparent, active and small risk free exchange between the US offshore market and the RMB offshore market, which helps to reduce the risk of cross-border RMB capital movements and domestic capital market turbulence, thereby reducing the export cost of China's manufacturing industry.

RMB valuation will be reduced to a certain extent. textile The spanaction cost of garment export is mainly manifested as two: first, speed up the settlement of export and improve the efficiency of capital settlement. With the improvement of the RMB cross-border settlement supporting measures, the RMB cross-border trade settlement process will be more convenient and efficient. Two is to avoid exchange losses, save fees and foreign currency hedging costs.

Liang Yanfen pointed out that stabilizing the external environment and strong financial conditions will become the biggest competitive advantage of Chinese textile and garment export enterprises.

To this end, China actively promotes RMB settlement in the "one belt and one way" country. Xinjiang, Pakistan, Tajikistan and other countries bypass the US dollar direct settlement. What are the advantages of China's textile and garment export enterprises? What are the advantages of this? What are the driving forces for investment cooperation between China's textile and garment enterprises along the belt and road?

On these issues, Liang Yanfen summed up 3 points for reporters.

First, the "one belt and one road" strategy is a major strategy and long-term strategy. The construction project requires huge funds and long construction cycle. Many countries along the "belt and road" are facing economic difficulties and unstable political situation. Promoting RMB settlement can at least avoid or reduce exchange rate risk.

The two is, for Chinese textile and garment manufacturing industry, we can have a clear idea of risks and controllable risks, such as stable budgetary funds, capital payment and spanaction convenience.

Three, for the government, with the opportunity of RMB joining the SDR, we will push forward the double multilateral financial institutions such as silk road fund, Asian investment bank, BRIC bank and China's participation in the European Development Bank of reconstruction. We will use the renminbi as the main investment and financing currency, improve the way of RMB financing support for the "one belt and one way" and the international production capacity cooperation, further expand the use of RMB in two-way investment and foreign assistance, and then promote the RMB valuation and settlement of major commodities in major trading partner countries.

It can be seen that the use of RMB denominated settlement reduces the cost of foreign exchange rate fluctuations, and can lock prices once and for all in trade negotiations, while avoiding the corresponding exchange losses.